News

India-Zimbabwe inks pact to make SMEs techno-savvy

KNN, 12 May 2018

Aiming to make local SMEs technology-savvy, Zimbabwe and India have signed an MoU extending the Indo-Zimbabwe project launched in 2006 and designed to enhance the capacity and capability of the SME sector. Indian Ambassador to Zimbabwe Mr Rungsung Masakui said the joint project has played a critical role in developing the country.
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The Economic Times, 12 May 2018

The customs department is planning simplified procedures for exports by India Post, including permitting e-commerce shipments through all foreign post offices, the finance ministry said. Since 2016, e-commerce exports had been allowed through FPOs (Foreign Post Offices) under MEIS (Merchandise Export from India Scheme) incentives from the post offices at Chennai, Mumbai & Delhi.
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Centre to double credit guarantee to MSMEs

The Economic Times, 11 May 2018

In a bid to tackle the trade finance woes of MSMEs, the Union Government announced that it would double the credit guarantee up to Rs 50,000 crores for 2018-19 under the CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) scheme set up by the Ministry of MSME. To ensure credit availability to MSMEs for inclusive growth, the Ministry is also holding discussions with all banks and NBFCs and is planning that 70,000 units giving employment generation to almost 5 lakh people be taken up this year itself.
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Lenovo launches V-Series laptop for SMEs, start-ups in India

The Economic Times, 10 May 2018

Chinese technology major Lenovo on 10 May 2018 launched a new V-series laptop "V330" for SMEs and start-ups with prices starting from Rs 48,000. The V330 laptop comes with entrepreneur-friendly flexibility features like an ultrabay drive that can house either an optical drive or an additional battery, a QuickCharge battery, an elegant spill-resistant backlit keyboard, USB-C type and USB 3.0 ports.
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Amazon India launches Weavesmart on its marketplace

The Economic Times, 3 May 2018

Amazon India launched Weavesmart, the e-commerce store for handlooms in India and an e-marketing partner for the Ministry of Textiles for promoting India Handloom Brand and Handloom Mark products, on its marketplace. Through this alliance, handloom & handcrafted products by weavers from various parts of the country associated with Weavesmart will now be available to millions of Amazon customers across India. Amazon India intends to help these associated weavers reach millions of customers across India and in turn help in empowering them and helping the weavers to display their creativity on a large scale. Currently, Weavesmart has more than 3000 weavers in its network and more than 20,000 products.
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Haryana to reduce power tariff for MSMEs

The Times of India, 23 April 2018

Haryana Chief Minister Mr Manohar Lal Khattar said power tariff will be reduced for small and medium enterprises having connection below 20 kilowatts. The tariff will be reduced from the present Rs 6.75 per unit to Rs 4.75 per unit from 1 May 2018.
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MSME Ministry - GSTN to share data of registered MSMEs

Knowledge & News Network, 11 April 2018

The MoMSME (Ministry of Micro, Small and Medium Enterprises) and the GSTN (Goods & Services Tax Network) will soon sign a pact to share database of the MSMEs registered with the Udyog Aadhaar portal and on GSTN database. Around 44 lakh MSMEs are registered with the Udyog Aadhaar portal, while the number of MSMEs on GSTN database is around 1 crore.
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West Bengal govt to set up integrated promotion hub for SMEs

The Economic Times, 9 April 2018

West Bengal government will be setting up an integrated production and promotion hub for small and micro enterprises, called Biswa Khudra Bazar near Santiniketan in Birbhum district on a 50-acre plot. The hub is being developed by West Bengal Small Industries Development Corporation (WBSIDC). It will take around two years to complete the project. According to the scheme of things there will be three separate units in the state-of-the-art Biswa Khudra Bazar - one for production of goods, another for the promotion and sale of the same products and the third one dedicated to developing newer markets for those products. The Entrepreneurs' Hub, where the production will take place, will come up on 5 acres, while the Business Hub, where the goods will be promoted and sold will be spread across 25 acres.
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FIEO, PayPal join hands to simplify international trade for Indian exporters and SMEs

The Economic Times, 5 April 2018

The FIEO (Federation of Indian Exports Organisation) and online payment system PayPal signed an MoU on 5 April 2018 to promote exports and leverage each other's technology and experience. The agenda of the partnership shall be to focus on: (a) 'Make in India' and 'Digital India' ; (b) enabling international transactions; (c) empowering SMEs, entrepreneurs, artisans, start-ups; and (d) conducting training and seminars for businesses to attune themselves to technology. Under this collaboration, PayPal will join FIEO to train SMEs on how to utilise professional opportunities and use technology for safe and smooth business.
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GST Composition Scheme for SMEs in India

India Briefing, 3 April 2018

The composition scheme is a system under the GST (Goods and Services Tax) Act that allows suppliers of goods, other than exempt goods, and restaurant-related service providers to file their GST returns at a fixed rate. This scheme is of particular interest to SMEs, although it can be accessed by any taxpayer whose turnover on the 'taxable supplies of goods' does not exceed Rs 15 million (US$230,100). For Indian states in the northeast and the north Indian state of Himachal Pradesh, the threshold limit is Rs 7.5 million (US$115,050).
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SIDBI, New India Assurance partner to cater to MSMEs

The Times of India, 2 April 2018

SIDBI has tied up with New India Assurance Co Ltd as a bancassurance partner to cater to the insurance needs of small businesses. A memorandum of understanding was signed with The New India Assurance Co and two MSMEs were issued insurance policies, SIDBI said. SIDBI is evolving as one stop solution provider, and launched a revamped website aimed at transforming the MSE ecosystem in the country on the occasion of its foundation day. SIDBI also launched an MSME contact programme to understand their opportunities, challenges and eco system so as to grasp what can be done to ease the way they do business.
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The Economic Times, 1 April 2018

SMEs raised around Rs 2,155 crore through IPOs in 2017-18, more than two-fold jump from the previous fiscal. Funds raised through IPOs were meant for business expansion plans, working capital requirements and other general corporate purposes, according to offer documents. A total of 148 companies got listed with IPOs worth Rs 2,155 crore in the last fiscal. Geographically, Gujarat topped the list as a maximum 50 firms from the state listed on SME bourses, followed by Maharashtra (43), Madhya Pradesh (13), Delhi (10), and Telangana and West Bengal (5 each).
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Universal Robots focuses on SMEs in India

The Hindu, 26 March 2018

Universal Robots, the world's largest manufacturer and supplier of collaborative robot ('cobot') arms, is focusing on SMEs to grow its business in India, the company's top executives said. Over two years, the robotics firm has supplied 400 cobots to companies in India, of which 10% have been sold to SMEs.
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Lendingkart Finance ties up with Sistema Business Scalerator to serve SMEs in South India

Business World, 29 March 2018

Lendingkart Finance announced that it has tied up with Sistema Business Scalerator to serve SMEs in South India. The Sistema team has built on-ground presence in select states where they will source business for Lendingkart Finance through their contact points and facilitate the loan disbursal process. Lendingkart Technologies is an online platform that makes working capital finance available to SMEs. As per the terms of engagement, Sistema Business Scalerator will deploy its team in the states of Tamil Nadu, Kerala, Karnataka, Telengana, Andhra Pradesh and Puducherry to help Lendingkart Finance source business and scale its operations in those states.
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MSME-DI Nagpur holds state-level vendor development program

Knowledge & News Network, 24 March 2018

MSME-Development Institute, Nagpur, in conjunction with IOC Ltd at Nagpur, organized a state-level vendor development program (SVDP). The objective of the SVDP is to create opportunities for MSMEs to develop as potential vendors for the CPSUs (Central Public Sector Undertakings) under the Public Procurement Policy.
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India Briefing, 20 March 2018

India's MSMEs will benefit from an extension for standing loan repayments to banks and NBFCs (Non-Banking Finance Companies). The announcement, made by the Reserve Bank of India, the country's central bank, provides immediate relief to MSMEs hurt by blocked cash flows due to the implementation of the GST (Goods and Services Tax). So far, the shift to the GST regime has been far from smooth for MSMEs; it has restricted the liquidity of these companies, resulting in their inability meet their repayment obligations to banks and NBFCs.
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ICICI Bank launches instant overdraft facility for MSME customers

The Times of India, 13 March 2018

ICICI Bank has launched an instant overdraft facility for up to Rs 15 lakh for MSME customers. The digital offering is being made available to current account customers of the bank for credit without the need to visit a branch or submit physical documents. The facility is available both on internet banking and ICICI's mobile app. ICICI Bank also plans to offer instant overdraft facility to MSME customers of other banks. The overdraft is renewable on an annual basis, depending on the customer's repayment track records.
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Women run a quarter of Karnataka's 20 lakh MSMEs

The Times of India, 11 March 2018

Women play a significant role in the growth story of Karnataka, one of India's leading industrialized states. Data shows that nearly 250 of every 1,000 MSMEs in Karnataka are owned and run by women, much higher than the national average of 190. This means that of the 20.5 lakh MSMEs in Karnataka, according to industry figures, 5.1 lakh are owned by women. Interestingly, of the 50-odd lakh employees in the MSME sector in the state, 40% or 20 lakh are women, data with the ministry of MSMEs shows.
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IIT-Delhi, IISc, KIAMS to help SMEs face 'disruptive' techs like AI

United News of India, 10 March 2018

To enable the Indian manufacturing to face 'disruptive' technology like Artificial Intelligence (AI), the Union Government would set up four SAMARTH innovation centres in the country's top institutions, including IIT, Delhi; IISc (Indian Institute of Science), Bengaluru; and KIAMS (Kirloskar Institute of Advanced Management Studies), Pune. The Department of Heavy Industry has approved a grant of Rs 78 crore to support these centres. While the centre at IIT, Delhi has already been inaugurated, the centres at IISc, Bengaluru and KIAMS Pune are likely to start by September 2018. All these centres will become self-sustaining within three years. They have been mandated to cover nearby clusters and colleges.
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EEPC signs MoU with the Czech Republic SME association

The Times of India, 9 March 2018

Engineering Export Promotion Council India has signed an MoU with the Association of Small and Medium-sized Enterprises and Crafts of the Czech Republic to promote bilateral trade and investment. The MoU was signed at the IESS (International Engineering Sourcing Show) on 8th March. As the partner country, the Czech Republic, with a strong manufacturing base, has a predominant presence of at least 50 companies at the IESS. Under the MoU, the two sides would exchange market information pertaining to the engineering sector and assist each other in organization of the exhibitions, trade fairs and buyer-seller meets. They will also encourage institutional partnerships in research and development, consultancy, besides technology transfer.
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Auto industry welcomes change in MSME definition

The Economic Times, 12 February 2018

With the Cabinet amending the definition of the MSMED (Micro, Small and Medium Enterprises Development) Act, 2006, several stakeholders in the industry are set to benefit from this change. While the auto component industry has welcomed this move, dealers are largely untouched by its benefits. According to the latest amendment to the MSME Act, MSMEs will be categorized on the basis of their annual turnover instead of investments in plant, machinery and equipment. Micro enterprises with an annual turnover up to Rs 5 crores, small enterprises with an annual turnover of more than Rs 5 crores but not over Rs 75 crores as well as medium enterprises with an annual turnover over Rs 75 crores but not exceeding Rs 250 crores will now come under its ambit. The earlier criteria were based on investments made in plant and machinery that was capped at Rs 10 crores. Consequently many companies that were out of the MSME bracket and missed the subsidies and incentives received under the MSME definition, have come under its umbrella. Read more

Government measures to ensure MSMEs become growth engine: DFS secretary

The Economic Times, 11 February 2018

A slew of recent measures, including tax concessions in the budget, for MSMEs has been taken with an aim to transform such enterprises into a growth engine for 'new India', Financial Services Secretary Mr Rajiv Kumar said. These initiatives will bring down the tax burden on enterprises with an annual turnover of up to Rs 250 crores and also lower the interest burden, leaving more surplus for investment and growth of the MSME sector. The RBI on its part too announced various measures for MSMEs hit by the implementation of GST by giving them additional up to 180 days to clear their dues to banks. Read more

86% rise in MSME registration in Gujarat

DNA, 11 February 2018

Number of small businesses grew to 86 per cent in Gujarat in about 18 months, said a senior government official. He attributed the rise to the conversion of unregistered units to registered ones. The move will enable the government to find solutions to the growth bottlenecks for the sector as well as increase compliance by the units resulting in higher tax revenues for the government. The rise in the registration is a result of a campaign initiated by the central government to convert the unorganised sector into the organised sector, said sources. Soon, one can expect separate packages for micro, small and medium enterprises as per their sizes rather than being clubbed together. Read more

Govt redefines MSMEs based on annual revenue

Mint, 8 February 2018

The Union cabinet on 7 February 2018 approved a proposal to redefine MSMEs, based on their annual revenue, replacing the current definition that relies on self-declared investment on plant and machinery. The move is expected to improve ease of doing business, avoid unnecessary inspections and at the same time enable the authorities to verify claims of businesses using the sales data they have from the GST Network, the company that processes GST (goods and services tax) returns. The move is in addition to steps being taken to stimulate the MSME sector’s growth, including a cut in corporate tax from 30% to 25%, announced in the Union budget, and the Reserve Bank of India’s decision to give a longer period to small businesses before classifying their loans as non-performing assets, or bad loans. Read more

MSME loans up to Rs 25 crores get more repayment time

The Economic Times, 8 February 2018

In a major relief to the medium and small enterprises sector, the RBI on 7 February 2018 said GST-registered MSME borrowers will get a further 180-day window to pay dues if their accounts were standard as on August 31, 2017. This move, allowed to banks and NBFCs, will be applicable for dues between September 2017 and January 2018 if the aggregate exposure does not exceed Rs 25 crores. Banks and NBFCs will not be required to downgrade asset classification of these MSMEs. Read more

Budget 2018 extends sops to MSMEs in push to formalize Indian economy

Mint, 2 February 2018

The Union Budget 2018 on 1 February 2018 extended sops to MSMEs as part of the government’s efforts to bring businesses under the formal economy’s fold. Finance minister Mr Arun Jaitley proposed to cut the corporate tax rate to 25% for companies with annual revenue of up to Rs 250 crore. The budget also earmarked Rs 3 trillion for 2018–19 under the Pradhan Mantri Mudra Yojana or Mudra scheme. In addition, Mr Jaitley allocated Rs 3,794 crores for credit support, capital and interest subsidy to MSMEs. Read more

Budget 2018: MSMEs get Rs 3794 crores allocation for credit support

The Economic Times, 1 February 2018

Commenting that MSMEs are "major engine of growth and employment generation" while presenting Budget 2018, Finance Minister Mr Arun Jaitley announced Rs 3794 crore allocation to MSME sector for credit support, capital and interest subsidy on innovation. The Finance Minister also asserted that demonetisation and the introduction of GST is enabling the government to make policies which will benefit the micro and small medium enterprises. Read more

MSME sector faces major problem in availing credit: Survey

The Economic Times, 29 January 2018

India's MSME sector faces a major problem in terms of getting adequate credit for expansion of business activities, according to the Economic Survey 2018. The survey tabled in Parliament by Finance Minister Mr Arun Jaitley pointed out that MSMEs received only 17.4% of the total credit outstanding. "Growth of credit to micro and small enterprises increased by 4.6%, while credit to medium enterprises decreased by 8.3%," it said. Elaborating on the status of the major schemes implemented for the MSME sector, the survey observed that loans extended under the Pradhan Mantri Mudra Yojana during 2016-17 have crossed the target of Rs 1.8 lakh crores. "Of this amount, Rs 1.23 lakh crores was lent by banks while non-banking institutions lent about Rs 57,000 crores. In December 2017, the total number of borrowers was 10.1 crores, out of which 7.6 crores were women," said the survey. Read more

The Economic Times, 18 January 2018

ITSL (India Transact Services Ltd.), an omni-channel merchant digital payment solutions company, has entered into a strategic alliance with Mobik, an Israel-based mobile advertisement platform. Their objective is to empower MSMEs. The MSME sector in India is very fragmented, and often lacks quintessential resources like technology and capital used by other organised large retail chains to retain their customers and market their products as well as the brand in the online space. ITSL and Mobik's aims at promoting special offers and products online, providing them with a platform and a set of marketing tools and apps. ITSL in a statement claimed that they wish to empower 10,000 merchants with this solution reaching out to 10 lakh end-consumers by 2019. Read more

West Bengal has highest number of MSMEs: official

The Economic Times, 16 January 2018

West Bengal has the highest number of MSMEs in the country with 52,69,814 units (11.62% of total), a development which will boost the state during the Bengal Global Business Summit. The eastern state left behind highly industrial regions like Maharashtra and Gujarat in the race, a data in the 2016–17 MSME ministry annual report showed. Uttar Pradesh ranked second after West Bengal, followed by Maharastra. In 2017, West Bengal also recorded the biggest bank credit flow to the MSME sector in the last five years at USD 15 billion, the report said. Read more

ETRISE launches Biz Listings, aims to help Indian SMEs grow their business

The Economic Times, 3 November 2017

As more and more consumers move online, having a web presence that can be easily discovered and generate visibility, leads and business becomes essential. In order to provide quick, reliable and comprehensive information to the users and connecting buyers (service seekers) with the sellers (service providers), ETRISE has launched 'Biz listings' for small businesses. ETRISE Biz Listings is a 'one-stop' platform enlisting Service providers / SMEs from various industries and will be accessible from across ET’s digital platforms. Read more

India’s new rank of 100 on Ease of Doing Business index not reflective of situation for MSMEs: IIA

KNN, 2 November 2017

In the World Bank's "Doing business" report of 2018, India has jumped to 100th place from 130th in 2017, the Finance Ministry informed recently. However this jump is not very reflective of the situation of the ecosystem that continues to haunts the MSMEs of the country, Indian Industries Association said. Read more

AU Small Bank, SIDBI launch Rs 200-cr fund for MSMEs

The Hindu Business Line, 28 October 2017

AU Small Finance Bank today tied up with SIDBI to launch a Rs 200-crore fund for providing loans to MSMEs. The programme will fund term loans in the Rs 25 lakh to Rs 2 crore ticket size. Under the advice of SIDBI, AU Bank will play the anchor in this programme as all the processes including disbursement, monitoring and recovery will be handled by them. The appraisal of the proposal shall be done jointly by AU Bank and SIDBI .Both the financial institutions will earmark a corpus of Rs 100 crore for lending under this agreement this financial year.Read more

Business Standard, 15 September 2017

CRISIL believes subsidizing and incentivizing credible SMEs to undertake skill development training programmes can help narrow India's yawning skill deficit. As things stand, less than five per cent of the country's workforce possesses formal vocational skills. In this context, engaging SMEs in skill development can boost the effectiveness of the government's Skill India initiative and also improve the competitiveness of the SME sector, which is India's second-largest employment generator. Read more

KITCO to launch programme to uplift micro, small and medium enterprises

The Economic Times, 13 September 2017

Consultancy major KITCO Ltd. is launching a programme to uplift MSMEs to make them competitive, as part of its 45th year anniversary celebrations. The programme will help address the issue of shortage of funds often faced by MSME sector. In the first phase, ten enterprises operating in various sectors will be selected under the programme. Read more

Fund for lending to SMEs to be ready in 5-6 months

The Indian Express, 13 September 2017

Mr Y M Deosthalee, former CMD of L&T Finance Holdings Ltd, indicated that over a dozen top executives of Indian firms are planning to create a fund that will lend exclusively to SMEs in the country. He said that the fund will be ready in the next five to six months. Read more

KNN, 8 September 2017

To help India's SME communities, Google has launched a feature titled 'Google My Business' for SME/business customers, which allows owners to manage the business listings from a simple, easy-to-access dashboard within Google Search. For this, owners are required to find their businesses on Google Search, complete and enhance listing, share photos and posts and see how many views they are receiving. According to Google India, more than 80% of people are searching the Internet to find local information.Read more

SME board fund-raising up 7-fold in 6 years

The Hindu Business Line, 7 September 2017

Small and medium enterprises have clambered onto the IPO bandwagon with alacrity: fund-raising activity through junior bourses has gone up by about seven times in the past six years. For small entrepreneurs, raising funds through the SME IPO platform yields dual benefits of increased capital availability on the one hand, and improved corporate governance on the other. Currently, 267 SMEs are listed on the NSE and the BSE. Some 81 of these companies are from Gujarat, followed by Maharashtra (76) and Delhi (22). In terms of sectors, SMEs from the construction, finance and investment, textile products, trading and computer hardware segments are among the top ones to hit the primary markets through this platform. A total of Rs2,458 crore has been raised so far by 267 SMEs.Read more

Business Wire India, 7 September 2017

The IndiaOnline.in Network, India's largest online network of 475+ inter-linked websites, has announced the launch of its operations in the Pink City, Jaipur, with an aim to cater to the ever-growing & robust SMEs sector of Rajasthan. IndiaOnline.in is targeting bringing over 1000 SMEs from Rajasthan under its marquee GETONLINE initiative within this year. The GETONLINE initiative of the IndiaOnline.in Network aims to equip each & every SME of the country with Website & Digital Marketing Solutions and educate them on how to grow their business using online tools & solutions. The Network will power Rajasthan with its dedicated portals namely www.RajasthanOnline.in, www.JaipurOnline.in, besides others for all major cities & towns of the state. The company also has regional Channel Partner offices in over 15 locations of the country including Agartala, Ahmedabad, Bhubaneswar, Guwahati, Gorakhpur, Hyderabad, Kochi, Kolhapur, Pimpri Chinchwad, Raipur, Sangli, Tinsukia, Vijayawada and Visakhapatnam and is headquartered at New Delhi. Read more

Summit set to increase SME business ties between UAE and India

The National, 5 September 2017

Giving Emiratis the confidence to "pitch camp" in India by investing in medium-sized projects such as housing and leisure tourism is the focus of initiatives being pursued by both nations ahead of a India-UAE Partnership Summit to be held from 30-31 October 2017 in Dubai. Dr Azad Moopen, Aster DM Healthcare's chairman, said the aim was to help Emirati businessmen understand the market in the sub-continent. Small and medium-sized enterprise projects ranging from 10 to US$50 million are likely to be showcased at the two-day summit, which aims to bring together ministers, government officials, industry leaders and investors from both countries. Read more

IFC Invests $10 million in Power2SME

The Economic Times, 5 September 2017

The IFC (International Finance Corporation) the private investment arm of the World Bank has invested $10 million as equity in Power2SME, an e-commerce platform that helps small and medium companies buy raw materials at bulk prices. In addition to the investment, IFC will also advise Power2SME to help it expand beyond its current 14 states, improve its ability to provide working capital to SMEs by adding more banks as partners, and increase the number of users on its platforms by up to 10 times in five years. Power2SME is backed by venture capital firms such as Kalaari Capital, Accel Partners, and Inventus Capital. Read more

Online tools helping Indian SMEs sell products globally: Facebook

The Economic Times, 6 September 2017

While 43 per cent of Indian exporters in SMEs (small and medium sized enterprises) depend on online tools for 75 per cent of their international sales, 63 per cent agree that using online tools for selling internationally has increased their revenue, a new survey by Facebook revealed on 6 September 2017. Read more

Gujaratis rule SME platform, Delhiites at rock bottom

The Economic Times, 29 August 2017

Gujarat-based SMEs (small and medium enterprises) are turning bullish on raising funds through SME exchanges. This could be gauged from the fact that out of total 72 SME IPOs (initial public offers) launched in 2017 so far, Gujarat has churned out 31, which is the highest from any state. Gujarat is followed by Maharashtra with 22 SME IPOs and Rs 257.10 crore of fund mobilisation. Rajasthan and Madhya Pradesh have seen four each IPOs hitting the market and Delhi three in 2017. Read more

DIPP to release new industrial policy by October, will review FDI Regime

Mint, 30 August 2017

The DIPP (Department of Industrial Policy and Promotion) under the commerce and industry ministry will release a new industrial policy by October 2017 that will focus on encouraging Indian branded products with higher value addition and will review the existing foreign direct investment policy regime to facilitate greater technology transfer. DIPP has adopted a consultative approach for formulating the industrial policy by setting up six thematic focus groups and an online survey on the department's website to obtain inputs. Read more